Mortgage for Unhabitable House

bob2oo7

Hi guys

Does anyone know if banks are lending for houses that are currently Unhabitable?

House externally is sound, needs work on the inside

I spoke to my bank and they wont lend. You have to make it habitable first.. which is obviously impossible to do

Are there any banks out there willing to give you the mortgage to buy the house, and do the renovations on top of that?

This particular house would of been worth crazy amount of money in the boom, now its available to purchase and renovate at a fraction of that

Thanks in advance

L1011

You won't get lent purchase price + guessed at renovation cost anyway, by anyone. You'll need to use an actual builders to do the work, any further money would be drawn down in stages and require proof of completion and they'd only lend to an assumed after renovation value. Under those terms, yes there are banks lending - I know of someone who received that from BOI recently.

If you want to do it yourself you'll need to have the cash, unborrowed, upfront for the renovations.

bob2oo7

Thank MYOB

I'm happy to do that once I get approval to buy in the first place

So get approval, put in the offer, hopefully get offer accepted. Get builders in to quote, give details to the bank, get the money for purchase, buy house, get money in "stages" as work is being completed. etc.

I'm going to meet with as many banks as I can in the next week to see what I can do

Trish56

bob2007. Lenders will lend for this type of project but are not keen on it so needs to be a strong case.

They will lend up to 92% of the purchase price of the property and up to 75% of the renovations/refurbishment. If you intend to carry out renovation work by direct labour they will issue same in stage payments as work progresses on a certificate from a Engineer/Architect who will also have to submit detailed costings. Max. overall mortgage cannot be more than 92% of the valuation.
Lender will require a valuation carried out by a valuer on their panel before approval who must be furnished with the detailed costings and include current value and value on completion. 10% of the proposed works will be retained until the works are fully completed.

Hope the above helps.

bob2oo7 wrote: »

Hi guys

Does anyone know if banks are lending for houses that are currently Unhabitable?

House externally is sound, needs work on the inside

I spoke to my bank and they wont lend. You have to make it habitable first.. which is obviously impossible to do

Are there any banks out there willing to give you the mortgage to buy the house, and do the renovations on top of that?

This particular house would of been worth crazy amount of money in the boom, now its available to purchase and renovate at a fraction of that

Thanks in advance